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DECISION No

DECISION No. 171/1998/QD-TTg OF SEPTEMBER 9, 1998 ON THE EXPERIMENTAL APPLICATION OF A NUMBER OF ECONOMIC DEVELOP-MENT POLICIES IN A NUMBER OF BORDER-GATE AREAS OF CAO BANG PROVINCE

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

At the proposal of the president of the People's Committee of Cao Bang province in Document No.276/TT-UB of June 14, 1998 and after considering opinions of the relevant ministries and branches at the central level,

DECIDES:

Article 1.- To allow the experimental application of a number of economic development policies in a number of border-gate areas of Cao Bang province (hereafter referred to as the Cao Bang border-gate economic areas), that include the following border-gate areas:

1. The Ta Lung national border-gate area, including Ta Lung border gate and Ta Lung commune of Quang Hoa district.

2. The Hung Quoc border-gate area, including Hung Quoc border gate and Hung Quoc commune of Tra Linh district.

3. The Soc Giang border-gate area, including Soc Giang border gate and Soc Ha commune of Ha Quang district.

The Cao Bang border-gate economic areas shall be given priority for trade, investment, import-export, service, tourist, industrial and agricultural development in accordance with the laws of the Socialist Republic of Vietnam and international practices.

The Socialist Republic of Vietnam respects and protects the legitimate interests of Vietnamese and foreign investors in the Cao Bang border-gate economic area in accordance with the current laws and policies of Vietnam as well as international agreements which the Socialist Republic of Vietnam has signed or acceded to.

Article 2.- Trade activities and trade services conducted in the Cao Bang border-gate economic area shall comply with the current regulations and include such activities and services as export, import, temporary import for re-export, goods transit services, bonded-warehouses, duty-free shops, show rooms, subcontracted production of goods for export, activities of branches and representative offices of domestic and foreign companies, and border-gate markets.

Article 3.- Domestic and foreign investors are encouraged to invest in production and business development as well as infrastructure construction in the Cao Bang border-gate economic area in accordance with the Law on Domestic Investment Promotion and the Law on Foreign Investment in Vietnam. Beside enjoying preferential policies toward mountainous regions and highlands under the current regulations, they shall also be entitled to the following:

1. Investors shall enjoy 50% land rent reduction, compared with the current land rent bracket set by the State and applicable in Cao Bang border gates.

2. Foreign investors when transferring their profits abroad, shall be entitled to the lowest tax rates in the tax bracket as prescribed by law.

The business registration procedures for domestic enterprises located in the economic border-gate area shall be carried out by the People's Committee of Cao Bang province, with simplicity and one-door regime. The Ministry of Trade shall guide and authorize the People's Committee of Cao Bang province to issue licenses to foreign enterprises for establishing their branches and/or representative offices for trade activities in the Cao Bang border-gate economic area, and to allow enterprises to organize international trade exhibitions-cum-fairs in the border-gate economic areas under guidance of the Ministry of Trade.

Article 4.- Investors in Cao Bang border-gate economic area are entitled to mobilize domestic and overseas capital sources in appropriate forms prescribed by Vietnamese law for the construction of infrastructure and production and/or service establishments according to socio-economic development plan, ensuring national defense and security.

Investment in the construction of industrial, civil and infrastructure projects in the Cao Bang border-gate economic areas must comply with the current provisions of the Vietnamese legislation on investment and construction management.

Article 5.- In the period from 1999 to 2002, the State shall annually make separate investment in the Cao Bang border-gate economic area through the provincial budget of Cao Bang, which is not lower than 50% of the yearly total budget revenue in the Cao Bang border-gate economic area.

The investment capital levels and lists of infrastructure construction projects to be invested with such capital source shall be proposed by the People's Committee of Cao Bang province and decided by to the Ministry of Planning and Investment after consulting the Ministry of Finance.

Article 6.- On entry and exit.

1. Citizens of the People's Republic of China (hereafter referred to as Chinese citizens) residing in districts that border on the Cao Bang border-gate economic area are allowed to travel through Cao Bang border gates with their identity cards or border area entry and exit laissez-passers, issued by the Chinese competent agency(ies).

Chinese citizens are allowed to temporarily reside in the Cao Bang border-gate economic areas for not more than 7 days; if they wish to travel to other places in Cao Bang province at the invitation of Vietnamese agencies and/or organizations in Cao Bang province, they must submit an application to the Cao Bang Police for the travel permits. Such a permit is only valid for one travel and not more than 5 days and shall not be extended.

2. Chinese citizens and other foreigners holding unofficial passports and entering the Cao Bang border-gate economic area shall be exempt from entry and exit visas and their temporary stay duration in the Cao Bang border-gate economic area shall not exceed 15 days; if they wish to visit other places in Cao Bang province or other provinces of Vietnam, the Entry-Exit Management Agency of the Vietnamese Ministry of Public Security shall consider and issue entry/exit visas for them at Ta Lung border gate.

In cases where Chinese citizens enter Vietnam for excursions or tourist visit, the "provisional regulation on the management and organization of Chinese citizens with Chinese entry/exit laissez-passers who enter Vietnam for excursions or tourist visits" (Decision No.229/1998/QD/TCDL of July 2, 1998 of the General Director of the General Department of Tourism) shall apply.

Article 7.- The People's Committee of Cao Bang province shall set up a Steering Committee for the implementation of this Decision. After two years of implementation, the People's Committee of Cao Bang province shall have to assume the prime responsibility and coordinate with the concerned ministries and branches in reviewing the implementation, drawing experiences therefrom and proposing the Prime Minister to consider and supplement mechanism(s) and/or policy(ies) suited to the new situation.

Article 8.- This Decision takes effect from January 1st, 1999. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the president of the People's Committee of Cao Bang province shall, within their functions, tasks and powers, have to implement this Decision.

Prime Minister

PHAN VAN KHAI